Elon Musk Effects on Twitter Ownership

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2 years ago

Elon Musk, the world's richest man, has officially purchased Twitter, the world's most popular microblogging network, for $44 billion.

Controversial Owner

Musk's bid to purchase Twitter had lately sparked debate in the cyber world; however, Musk paid a price that was several times higher than the market price, which looked ridiculous to refuse. Finally, on April 25-26, 2022, Musk purchased Twitter.

Mixed Effect

Musk's purchase of Twitter sparked a range of opinions on the social media platform (Twitter itself).

Crypto Based - Because Elon Musk is a proponent of cryptocurrencies, crypto enthusiasts are the happiest on Twitter, while crypto opponents are the most enraged. El Salvador's President Nayib Bukele, a Bitcoin lover, has welcomed the news, while Peter Schiff, a fierce opponent of Bitcoin and owner of Schiff Gold, has claimed this is Musk's move to sell Tesla's token TSLA.

Market Based - According to American business and financial journalist James Surovicki, Musk took a $25 billion loan to buy Twitter at an average interest rate of roughly 5%, meaning Twitter will pay more than $1 billion per year only in interest. People are also predicting that as a result of this acquisition, the international market for cryptocurrencies will grow, and crypto will overtake fiat currency as the dominant currency.

Political Based - Due to Musk's promise of free speech, the Republican vs. Democrat divide in American politics has grown. Former US President Donald Trump's Twitter account was suspended, and Republicans are requesting that it be restored, which Democrats are opposing.

Other Effects

Peace Over Controversy - Some people, such as crypto critic Paul Krugman and Musk's foe Bill Gates, have kept away from the debate.

DOGE To The Moon Effect - Elon Musk's favourite cryptocurrency, Dogecoin, has seen its value rise in the crypto market (that too when the market is going down).

Possible Conclusion

In the market, there is always buying and selling, and it is customary to have discussions about major changes. Musk is not going to make such a huge deal for no reason; he has his own strategy for running it. This will proceed forward if Musk is successful; if otherwise, it will be sold.

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